Legislature(2005 - 2006)SENATE FINANCE 532
04/12/2005 05:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 66 | TELECONFERENCED | |
| += | HB 67 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
April 12, 2005
5:07 p.m.
CALL TO ORDER
Co-Chair Wilken convened the meeting at approximately 5:07:53 PM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice-Chair
Senator Bert Stedman
Senator Lyman Hoffman
Senator Donny Olson
Senator Fred Dyson
Also Attending: BRETT CARLSON, Coldfoot Camp
Attending via Teleconference: Public testimony was presented in the
order reflected in the minutes.
SUMMARY INFORMATION
HB 66-APPROP: MENTAL HEALTH BUDGET
HB 67-APPROP: OPERATING BUDGET/LOANS/FUNDS
The Committee heard public testimony from Glennallen, Kenai,
Gakona, Homer, Kodiak, Anchorage, Mat-Su, and Fairbanks regarding
the FY 06 Operating Budget. The bills were held in Committee.
CS FOR HOUSE BILL NO. 66(FIN)
"An Act making appropriations for the operating and capital
expenses of the state's integrated comprehensive mental health
program; and providing for an effective date."
CS FOR HOUSE BILL NO. 67(FIN)(brf sup maj fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
This was the fourth hearing for these bills in the Senate Finance
Committee.
The Committee scheduled testimony from the Legislative Information
Offices in Glennallen, Seward, Homer, Kenai, Kodiak, Dillingham,
Anchorage, Fairbanks, and Mat-Su.
Co-Chair Wilken announced that this hearing would be a continuum of
public testimony on the operating budgets.
In response to a question from Senator Stedman, Co-Chair Wilken
clarified that the Version "L" committee substitute for HB 67 is
before the Committee.
DR. DOUG STARK, Homer City Council Member, testified via
teleconference from Homer and commented that, while Public
Employees Retirement System (PERS) funding is not included in the
operating budget, he is confident the Legislature would address the
PERS funding issue. Were the approximate $260,000 in PERS funding
needed by the City forthcoming, the City could have sufficient
funds to address its $400,000 deep-water dock corrosion issue.
Another issue of concern would be funding to refurbish the
community's fire truck.
Senator Stedman informed that SB 141-PUBLIC EMPLOYEE/TEACHER
RETIREMENT/BOARDS has passed the Senate and is advancing to the
House of Representatives. The implementation of this legislation
would allow time to further develop the components of the bill and
determine how "to restructure the debt". The intent is to assist
communities over the next few years in addressing their PERS/TRS
increased costs.
Senator Stedman asked whether the dock repairs involved sheet metal
galvanized material as other areas of the State are experiencing
deferred maintenance issues with that.
Dr. Stark replied that the dock is constructed of steel piling.
Co-Chair Wilken asked that the Homer City Council consider
participating in efforts to encourage the Legislature to pass "some
sort of retirement reform" this Session.
Dr. Stark voiced that the Council is supportive of the Tier 4
recommendation and the proposed change to a Defined Contribution
Program (DCP). These would assist in correcting the problem. He
also noted that the Alaska Municipal League is in support of DCP as
a solution to the PERS/TRS issue. He commented that he would
further Co-Chair Wilken's support request to the City Council.
ALAN LEMASTER, Gakona resident, testified via teleconference from
Glennallen and voiced support for Governor Frank Murkowski's
operating budget proposal to provide a five million dollar match to
the Alaska Travel Industry Association (ATIA) for a State marketing
program. He assured that the travel industry could meet its five
million dollar match increment. The combined ten million dollar
budget would have a positive impact. Individual small businesses
are unable to adequately fund tourism marketing, but ATIA would,
with State assistance, be able to make a successful marketing
program possible.
Co-Chair Wilken remarked that the ATIA contingency has been quite
effective in its recent lobbying efforts to increase funding. Good
information has been provided; including clarification that some of
the rental car tax revenue was desired to fund tourism marketing.
Tourism funding would be further reviewed.
JOHN DOWNS, Director, Copper River Economic Development Council
testified via teleconference from Glennallen in support of funding
tourism marketing at the five million dollar level. Tourism is one
of the State's few re-occurring resource. Direct results of
effective tourism marketing campaigns are experienced in the area.
BRETT CARLSON, Owner, Coldfoot Camp, testified in Juneau and urged
the Committee to increase tourism funding to five million dollars.
He voiced that increasing this budget is important, as it would
assist in growing the private sector economy, which supports
families. 46,000 jobs are provided by the visitor industry. The
product is in place, but "the message must get out to the rest of
the world". State government should assist in the endeavor and
thereby grow the industry. He reviewed previous Sate/industry
funding scenarios and assured that the travel industry has
endeavored to raise money. While the rental car tax collects money
from independent visitors to the State, there is currently "no
mechanism" through which "to reinvest" it to the tourism industry.
The industry is aware of the challenges it faces, but views the
five million dollar match proposal to be a bridge to future
conversations.
Co-Chair Wilken agreed that tourism funding has been an on-going
project. The tourism industry/State match requirement was changed
the previous year from 60/40 to 50/50. Work on tourism funding,
including addressing the car rental tax tourism funding mechanism,
would continue.
At the urging of Co-Chair Wilken, Mr. Carlson relayed a recent
grizzly bear encounter he had experienced at the restaurant at the
Coldfoot Camp restaurant.
Co-Chair Wilken announced that, in addition to verbal testimony,
written testimony from the public is welcome.
5:31:31 PM
PAM FOREMAN, Executive Director, Kodiak Island Convention &
Visitors Bureau, testified via teleconference from Kodiak in
support of restoring tourism marketing funding to the five million
dollar level supported by the Governor and the House of
Representatives. "The tourism industry is committed to matching"
that money. The vast majority of the 200 business members of the
Kodiak Island CVB are small and depend directly or indirectly on
tourism. A broad marketing program is critical to diversifying the
economy and supporting tourism businesses.
5:32:35 PM
DALE FOX, Executive Director, CHARR Cabrera Hotel Restaurant and
Retailers Association testified via teleconference from Kodiak and
urged that tourism funding be approved at the five million dollar
level. He referenced the Alaska Visitor Statistics Program
component in the budget and stated that it "is a very important
piece of research" that is pro business. It provides information
such as where visitors come from, how much they spend, what they
like or dislike, and what they do when in the State. This
information is valuable as it helps style a marketing program to
better target visitors in addition to providing businesses
important information through which to develop a business plan and
garner financing.
5:35:03 PM
TONY LEWIS, Kaleidoscope Charter School, testified via
teleconference from Kenai and urged for the inclusion of a $250,000
support grant for small charter schools. This grant is included in
the House operating budget proposal. Charter schools offer parents
choices in how their child is educated. He shared details regarding
how the current State funding mechanism for charter schools
"severely penalizes" small charter schools.
5:36:28 PM
MYA RENKEN, Executive Director, Kenai Convention & Visitors Bureau,
testified via teleconference from Kenai and urged the Committee to
support the five million dollar tourism-marketing component. The
industry would match this amount and the combined resource would
provide the industry, particularly it's small members, to obtain a
level of marketing that otherwise would be unobtainable. Tourism is
important to the State.
AT EASE: 5:37:54 PM / 5:48:49 PM
5:49:00 PM
JACQUIE STECKEL, Principal, Kaleidoscope Charter School of Arts and
Sciences, testified via teleconference from Kenai, and encouraged
the Committee to include a $250,000 grant increment in the budget
to support small charter schools. This would apply to schools with
an enrollment of fewer than 150 students. Until her school, which
is in its first year of operation and has 88 students, exceeds 150-
students, its funding is included as part of the community's
largest school. This grant funding would supplement the funding the
charter school receives under the current funding scenario. Her
small charter school currently receives 84-percent of the amount it
would receive were its enrollment to exceed 150 students.
AT EASE: 5:51:06 PM / 6:05:22 PM
6:06:27 PM
KACY TELFER, associated with the Mary Magdalene Home Alaska,
testified via teleconference from Anchorage and urged the Committee
to provide $400,000 for the construction of a transitional housing
residence for women in the treatment programs the nine-year old
non-profit organization provides in Anchorage. She noted that this
would be a capital budget request. The Home raises 100-percent of
the funds required for its operation.
Co-Chair Wilken asked whether this request has been presented to
Senator Green for consideration in the capital budget.
Ms. Telfer announced that the request has been submitted and has
widespread support from Anchorage legislators.
6:08:38 PM
LANCE WILBUR, Director, Traffic Department, Municipality of
Anchorage testified via teleconference from Anchorage and spoke to
the Traffic Signal Management request on page 35 of HB 67. Noting
that 70-percent of the travel signals maintained by the Department
belong to the State, he asked that the Governor's $1.4 million
budget proposal for this item be adopted, as it would more
adequately fund this need.
Mr. Wilbur continued that another item of concern is the
Southcentral Region's basic operation and maintenance budget. The
majority of streets and highways in Anchorage are owned by the
State; therefore the State is responsible for such things as fixing
potholes, sweeping, and plowing. The funding level recommended by
the Governor would more adequately meet this funding need.
6:11:32 PM
SUSAN SATIN testified via teleconference from Anchorage and thanked
the Committee for supporting the Governor's budget proposal for
public broadcasting. This funding is important as it allows for the
continuance of public broadcasting television and radio services
such as daily weather reports, historical documentaries, and
economic development reports. Public broadcasting is an
indispensable State resource.
6:13:35 PM
TOM WILLIAMS testified via teleconference from Anchorage and urged
the Committee to support the Governor's proposed flat funding
budget for public broadcasting. He recounted his involvement in
public broadcasting and avowed that the advances that have been
made in public broadcasting technology would enhance its ability to
meet its public education mission.
6:15:07 PM
CAROL DOWNEY, Progressive Personal Care Agency, testified via
teleconference from Anchorage and spoke in concern regarding the
intent language on page 20 of HB 67 regarding the Department of
Health and Social Services' Senior and Disabilities Medicaid
Services programs. She voiced strong support for the Personal Care
Attendant (PCA) Program as "it allows people to remain in their
homes and out of long care institutions" such as hospitals and
nursing homes. She cautioned against some of the 14 items specified
in the intent language, specifically the basis being used to
determine the eligibility of people "by functional assessment"
rather than being based on nursing homes or hospital level of care.
She spoke in support of retaining "standby assistance" service in
the program.
Co-Chair Green informed that the intent is to control costs in the
program as in 1997, the State spent $1.5 million to two million
dollars on this program. In FY 02 and FY 03, the amount for PCA
increased exponentially. In FY 05 approximately $31 million in
general funds alone would be spent with a total budget of $80
million. "We are clearly in a crisis in this program". Cost
controls via such things as eligibility, depth and length of
service must be implemented.
6:21:23 PM
RON PECK, President and Chief Operating Officer, ATIA, testified
via teleconference from Anchorage to urge support for the
Governor's tourism marketing budget proposal. Those five million
dollars would be matched by the industry. This would result in
attracting more visitors and diversifying the State's economy.
ATIA's participation in marketing the State has increased from two
million dollars in the year 2000 to double that in FY 05. The
State's participation has decreased from ten million dollars in the
early 1990s to less than four million dollars. Adequate marketing
is essential in allowing the visitor industry to be a vibrant,
strong and growing sector of the State's economy. ATIA has worked
with the Department of Commerce, Community and Economic Development
"to craft a marketing program that is effective" and cost
efficient. While appreciative of the hard efforts being exerted to
plan the FY 06 budget, he urged that the five million dollar
tourism-marketing program be considered "as an investment in
Alaska's most vibrant economic sector". No overhead or staff
expenses would be supported by the funds.
AT EASE: 6:24:08 PM / 6:36:55 PM
6:37:18 PM
BONNIE QUILL, Mat-Su Convention & Visitors Bureau, testified via
teleconference from Mat-Su and urged support for the Governor's
proposed budget for tourism. The money provided by the State would
be matched by the industry. The success of bringing visitors to the
state is the direct result of marketing efforts furthered by ATIA.
These efforts have allowed small businesses and visitor bureaus to
reach broad markets, including international travelers from places
such as Japan and Germany. Road shows and image advertising
organized by ATIA are also beneficial. She recounted the decreased
State support for tourism marketing and the increasing financial
contribution of the industry. She urged the Committee to view
funding to this program as "an investment in the growth of our
economy".
6:41:30 PM
CARRIE DERSHIN, representing the Health and Social Services
Commission, testified via teleconference from Fairbanks and spoke
in appreciation for the Committee's retention of the Human Services
Community Matching Grant program funding at the level requested by
the Governor. She provided examples of the "essential human
service" programs funded by this program. The grant programs are
run in an effective, efficient, and cost-effective manner. In 2002,
the grants were leveraged to provide services worth 17 times the
amount provided in actual grant dollars. Unfortunately since 2001,
State funding of these grants has decreased 43-percent. This
resulted in an annual direct loss of $400,000 in State funds to the
community of Fairbanks. She reviewed the negative effects the
current Senate budget proposal would have to programs in the
community. The Commission urges that this funding be increased to
$2.2 million.
Co-Chair Wilken informed that the FY 06 budget would provide
$76,000 more than the FY 05 budget. This would allow the
communities of Mat-Su, Fairbanks, and Anchorage to participate in
the program. He acknowledged the great job conducted by the
Commission.
6:45:14 PM
ALLISON WING testified via teleconference from Fairbanks and spoke
regarding the Senior and Disabilities Services budget; specifically
item 1 of the intent language relating to the PCA program. It is
important to the welfare of the Medicaid PCA program, the
recipient, and taxpayers "to provide adequate fiscal management and
gain control of costs of this valuable and necessary service".
However, "cost reducing efforts should be made without jeopardizing
the health and welfare" of the program recipients; specifically
that individuals be allowed to remain in their home with their
chosen caregiver rather than being institutionalized.
Co-Chair Wilken shared that in 1997, the State of Alaska spent
$1.76 million in support of the PCA program. In FY 06, the proposed
budget would amount to $30.9 million, a 184-percent increase per
year. There is concern regarding the costs of the program. The
intent language "is the beginning of the partnership within the
Legislature and the Administration to try to reign in PCA costs
without damaging the services" that are provided.
Ms. Wing agreed that costs must be contained; however, stressed
that other means of changing it be considered "before changing the
scope of services".
6:49:33 PM
LEONE HATCH testified via teleconference from Fairbanks and thanked
the Committee for funding public broadcasting at the flat level
proposed by the Governor. She shared her involvement with public
broadcasting, specifically radio, since 1985. Public broadcasting
reaches across the State and "ranges from the delightful to the
profound". Some of the programs produced relate to the history of
the Alaska Railroad, fishing, Native news, cultural events, and
more. "It is an enhancement to life in the Interior". It educates,
informs, and supports constructive community discussions. It
exposes Alaskans to the world and visa versa. She likened the use
of funding public broadcasting with public funds to putting
libraries in schools. "Public funding helps keep public
broadcasting public" and allows the public to participate in many
ways such as participating in public forums or volunteering.
6:54:05 PM
CAROLYN GRAY testified via teleconference from Fairbanks and
thanked the Committee for funding public broadcasting. Efforts have
been made to keep public broadcasting as efficient as possible by
streamlining programming and consolidating stations. National,
State, and local programs are provided through this service.
6:55:27 PM
GINGER STOCK, President, Web Weavers Technology Group testified via
teleconference from Fairbanks in support of public broadcasting, an
indispensable State resource. The local services provided impact
many lives in a positive way.
Co-Chair Wilken congratulated Ms. Stock on being recently awarded
the Small Businessperson of the Year by the University of Alaska
Fairbanks School of Management.
6:57:44 PM
DEB HICKOK, President and CEO, Fairbanks Convention & Visitors
Bureau and Member, Board of Directors of ATIA, testified via
teleconference from Fairbanks and requested that the Committee
adopt the Governor's proposed budget for tourism marketing. She
spoke to the participation of the industry in marketing the State
and the ATIA match to the State funding.
7:00:05 PM
LOUIS GROSS, Director, North Star Council on Ageing, testified via
teleconference from Fairbanks and spoke in support of increasing
the funding of the Human Services Community Matching Grant program
to the $2.2 million level requested by communities. Flat funding of
the program would negatively impact several agencies. A loss of
$50,000 would reduce the Council's Meals on Wheels program by one-
seventh. No savings would be realized were such things as assisted
living programs' funding reduced, as other agencies would then be
burdened. The cost of providing 30 days of meals would equate to
one day of assisted living care; a year of meals could be provided
for the cost of one week's stay in a hospital. These programs
provide a form of "preventative maintenance". Increasing population
in the State is contributing to the costs of the programs.
7:03:20 PM
TABER REHBAUM, Arctic Alliance for People, testified via
teleconference from Fairbanks and urged that the Human Services
Community Matching Grant program funding be increased to $2.2
million. This amount would restore much of the reductions "that
have eroded the program since 2001 while accommodating the
participation of the Mat-Su Borough". Fairbanks has experienced a
43-percent reduction in funds available for local programs since
2001. This has resulted in great loss of vital services to
individuals in need as well as the loss of being able to leverage
the funds to garner additional dollars. She noted that a chart
would be provided to Committee members that would reflect what
programs would or would not be funded were the current level of
funding continued.
AT EASE 7:06:46 PM / 7:20:36 PM
7:20:46 PM
CHERYL KILGORE, Interior Community Health Center, testified via
teleconference from Fairbanks and urged that the Human Services
Community Matching Grant program funding be increased to $2.2
million. She read a letter from the Center's Board of Directors in
support of the funding. Funding reductions have limited the number
of local programs that could be funded or partially funded. Many
individuals have needs but could not receive services due to a lack
of funding. The agencies "provide services at a much lower client
cost than the cost incurred when they don't receive services" as
increased complications result in greater expenses.
Co-Chair Wilken asked that the letter be provided to the Committee.
Ms. Kilgore noted that the Health Center provided services to 7,000
people who logged 21,000 visits. Half of those individuals had no
health insurance coverage. "The situation isn't getting better,
it's getting grimmer". As difficult as it might be, funding human
essential services early is a better alternative than being
required to address it later.
Co-Chair Wilken shared that between the time that the Legislature
adjourned in May 2004 and convened in January 2005, there had been
an $80 million increase in Medicaid expenses. A $65 million
increase is projected for FY 06. Alaska is not the only State
experiencing this situation as medical and Medicaid expenses are
"just eating up budgets". Addressing such expenses is "a daunting
task".
Co-Chair Wilken reiterated that the FY 06 budget would provide an
additional $76,000 to the community grant program in the
communities of Mat-Su, Anchorage, and Fairbanks.
Ms. Kilgore voiced appreciation for any efforts to further increase
the budget.
AT EASE: 7:25:19 PM / 7:32:34 PM
There being no further testifiers, Co-Chair Wilken announced that
public testimony from Juneau and off-nets sites would take place
the evening of April 13, 2005.
ADJOURNMENT
Co-Chair Wilken adjourned the meeting at 07:33 PM.
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